VAT return preparation

VAT bridging method: Streamlined VAT return preparation for small taxpayers

To assist small taxpayers in efficiently managing their VAT obligations, you can use the VAT bridging method. This method simplifies the process of preparing and submitting VAT returns from data entry to the ultimate submission.

You can go through the following steps to see the entire process:

1. Entering VAT details

• Access the 'Edit VAT details' option to input essential information such as the VAT number and VAT registration date.

• Select the appropriate VAT scheme and other details as applicable.

• 'Save' the entered VAT details.

  

  Entering VAT details

2. Downloading and completing template

• Download the provided template from the VAT return screen. You also have the option to download this later once you click on '+VAT return'.

• Fill in the template with the requisite VAT return data.

  

  Downloading the template

3. Adding and configuring VAT return

• Click on '+VAT return'.

  

  Initiating VAT
• All obligations outstanding with HMRC would be fetched in the dropdown. Select the relevant period for which the VAT return is being prepared.

• You can provide a concise description within the designated box and click 'Save'.

  

  Selecting the period

4. Importing of VAT template

Click on the '+Import' button to attach the completed template. The details in the Excel would auto-populate on the screen.

Importing the template

5. Return verification

• Verify the displayed information retrieved from the uploaded Excel file, including a. Input VAT b. Output VAT and c. Amount to be paid (displayed in red background) or refunded by HMRC (displayed in green background). Output VAT and Input VAT tab show more concrete details.

• To edit the return, you can re-upload any file, which will replace the existing data.

  

  Verifying the displayed information

De-registering for VAT

• For returns associated with the final VAT submission period, please utilise the settings button located in the top right corner.

  

  Deregistering for VAT
• Confirm the intention to de-register for VAT.

  

  Confirming the deregistering of VAT
• Selecting 'Yes' will designate the period as the final VAT submission period.

• To revoke this designation, click on 'Click here to remove Final VAT.'

6. Review process at the preparer’s end

• On completion of preparation and once satisfied with the figures, you can go ahead with the review process.

• Click the 'Send Review Request' button on the left side of the VAT screen to initiate a comprehensive review of VAT return

  

  Sending a review request
• Upon clicking the 'Send Review Request' button, a dialogue box will appear allowing you to: a. Select the reviewer for the VAT return. b. Add remarks using the provided option. c. Attach the working files.

• Click on 'Save' to complete the process.

  

  Confirming the review request
• Returns once sent for review can be rolled back for editing using the rollback option by providing remarks.

  

  Rollback option

7. Review process at the reviewer’s end

• A review request is created in the actions tab on the dashboard for the reviewer along with an email notification. On click of button, the same can be reviewed. Also, when the reviewer navigates into that particular VAT return, he can click on the review button to overview the things at his end.

• Here, the reviewer can view the prepared return along with details of input and output VAT and once satisfied, click on 'Approve' button.

• He can also reject the same by specifying the reason for rejection along with remarks, if any which will send an email notification to the preparer. Individuals also have the option to change the reviewer and download the working files attached by preparer.

  

  Review process at the reviewer's end

E-Signature

• After the review process is complete, you can now send the drafts to the client for his review and approval. Click on the 'Create E-signature' button located at the bottom left of the VAT return screen to do the same.

  

  Creating e-signature
• This action will redirect you to the original VAT return screen, where you will see the E-Signature option created for client acceptance.

• Use the email icon to send the created E-signature to the client along with a copy of the prepared return.

  

  Sending e-signature via email
• By clicking the 'Send' button, an email will be dispatched to the client for their review.

  

  Sending an email

Client authorisation

• The client receives an email from the accountant to review the prepared VAT return and associated e-signature.

• On clicking the button in the email and authorising the link through an 'OTP', the client will be directed to a declaration document displaying the details of the prepared VAT return. Here he can view the return and also download a copy of it.

• Once satisfied, he can give his go-ahead for submission by clicking the 'Accept' button.

  

  Client authorisation screen

Submission to HMRC

• On clicking the status of the return, you can view the return and click on the 'Submit' button. Alternatively, you can go to the three dots and click on 'Submit' to HMRC to proceed with the submission. You can then poll the submission to get a response from HMRC’s end.

  

  Submission to HMRC
• Once submitted, use the email icon to promptly send the submitted VAT return to the client for their records along with an acknowledgement email.

Further, you have following options on the VAT return dashboard

1. All liabilities and payments due to HMRC will be displayed under the Liabilities & Payments section. Enter the period range for which you want to check the liabilities and payments, and click on 'Show' to proceed.

Liabilities & Payments tab

2. If you want to authorise the acting office to connect with HMRC for filing your VAT return after your MTD expires, click the 'Reauthorise' button. You will need to enter your HMRC user ID and password to proceed.

Re-authorise tab

Hope this is helpful.

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VAT return preparation

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